The head of Iran Air was quoted on Sunday as saying the value of the contract would not be more than $10 billion.

The deal is part of plans to renew Iran Air’s ageing fleet.

But the airline’s agreement with Airbus – and another with Boeing – have only been finalised in the last weeks of the year. There have been months regulatory delays following the lifting of sanctions in January 2016.

The end of the sanctions came after Iran and a group of world powers agreed a framework deal over Tehran’s nuclear programme. But US President-elect Donald Trump has criticised that deal and raised the prospect of US withdrawal from the pact.